40 stat 411 title 50 usca trading with the enemy act 1917

8/7/2019 40 Stat 411 TITLE 50 USCA Trading With the Enemy Act 1917

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TITLE 50, APPENDIX App. > TRADING > ACT OCT

ACT OCT. 6, 1917, CH. 106, 40 STAT. 411

1. Designation of Act

2. Definitions 3. Acts prohibited 4. Licenses to enemy or ally of enemy insurance or reinsurance companies; change of name;doing business in United States 5. Suspension of provisions relating to ally of enemy; regulation of transactions in foreignexchange of gold or silver, property transfers, vested interests, enforcement and penalties 6. Alien Property Custodian; general powers and duties 6a. Incurment of expenses by Office of Alien Property Custodian 6b. Omitted 7. Lists of enemy or ally of enemy officers, directors or stockholders of corporations inUnited States; acts constituting trade with enemy prior to passage of Act; conveyance of property

to custodian; voluntary payment to custodian by holder; acts under order, rule, or regulation 8. Contracts, mortgages, or pledges against or with enemy or ally of enemy; abrogation ofcontracts; suspension of limitations 9. Claims to property transferred to custodian; notice of claim; filing; return of property;suits to recover; sale of claimed property in time of war or during national emergency 10. Acts permitted; applications for patents, or registration of trade-marks or copyrights;payment of tax in relation thereto; licenses under enemy owned patent or copyright; statementsby licensees; term and cancellation; suits against licensees; restraining infringements; powers ofattorney; keeping secret inventions 11. Importations prohibited 12. Property transferred to Alien Property Custodian

13. Statements by masters of vessels and owners of cargoes before granting clearances 14. False manifest; refusal of clearance; reports of gold or silver coin in cargoes for export 15. Omitted 16. Offenses; punishment; forfeitures of property 17. Rules by district courts; appeals 18. Jurisdiction of courts of Philippines and Canal Zone of offenses 19. Print, newspaper or publication in foreign languages 20. Fees of agents, attorneys, or representatives 21. Claims of naturalized citizens as affected by expatriation 22. Fugitives from justice barred from recovery 23. Payment of income, etc., by Alien Property Custodian

24. Payment of taxes and expenses by Alien Property Custodian 25. Investments by Custodian in participating certificates issued by Secretary of theTreasury; transfers to and payments from German, Austrian or Hungarian special depositaccounts; allocation of payments 26. Allocation of unallocated interest fund 27. Return by Custodian, to United States, of payments under licenses, assignments or salesof patents 28. Unallocated interest fund defined


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29. Waiver by Custodian of demand for property; acceptance of less amount; approval ofAttorney General 30. Attachment or garnishment of funds or property held by Custodian 31. Member of the former ruling family defined 32. Return of property

33. Notice of claim; institution of suits; computation of time 34. Payment of debts 35. Hearings on claims; rules and regulations; delegation of powers 36. Taxes 37. Insurance of property 38. Shipment of relief supplies; definitions 39. Retention of properties or interests of Germany and Japan and their nationals; proceedscovered into Treasury; ex gratia payment to Switzerland 40. Intercustodial conflicts involving enemy property; authority of President to conclude;delegation of authority 41. Divestment of estates, trusts, insurance policies, annuities, remainders, pensions,

workmens compensation and veterans benefits; exceptions; notice of divestment 42. Claims for proceeds from sale of certain certificates: jurisdiction, limitations;divestment of copyrights: copyrights defined, rights of licensees and assignees, reproductionrights of United States, transfer of interests, payment of royalties to Attorney General, suits forinfringement 43. Divestment of trademarks 44. Motion picture prints, transfer of title

1. Designation of Act

This Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix] shall be known as the Tradingwith the enemy [1] Act.

[1] So in original. Probably should be capitalized.

2. Definitions

The word enemy, as used herein, shall be deemed to mean, for the purposes of such tradingand of this Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix]

(a) Any individual, partnership, or other body of individuals, of any nationality, resident withinthe territory (including that occupied by the military and naval forces) of any nation with whichthe United States is at war, or resident outside the United States and doing business within suchterritory, and any corporation incorporated within such territory of any nation with which the


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United States is at war or incorporated within any country other than the United States and doingbusiness within such territory.

(b) The government of any nation with which the United States is at war, or any political ormunicipal subdivision thereof, or any officer, official, agent, or agency thereof.

(c) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjectsof any nation with which the United States is at war, other than citizens of the United States,wherever resident or wherever doing business, as the President, if he shall find the safety of theUnited States or the successful prosecution of the war shall so require, may, by proclamation,include within the term enemy.

The words ally of enemy, as used herein, shall be deemed to mean

(a) Any individual, partnership, or other body of individuals, of any nationality, resident withinthe territory (including that occupied by the military and naval forces) of any nation which is an

ally of a nation with which the United States is at war, or resident outside the United States anddoing business within such territory, and any corporation incorporated within such territory ofsuch ally nation, or incorporated within any country other than the United States and doingbusiness within such territory.

(b) The government of any nation which is an ally of a nation with which the United States is atwar, or any political or municipal subdivision of such ally nation, or any officer, official, agent,or agency thereof.

(c) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjectsof any nation which is an ally of a nation with which the United States is at war, other thancitizens of the United States, wherever resident or wherever doing business, as the President, ifhe shall find the safety of the United States or the successful prosecution of the war shall sorequire, may, by proclamation, include within the term ally of enemy.The word person, as used herein, shall be deemed to mean an individual, partnership,association, company, or other unincorporated body of individuals, or corporation or bodypolitic.

The words United States, as used herein, shall be deemed to mean all land and water,continental or insular, in any way within the jurisdiction of the United States or occupied by themilitary or naval forces thereof.

The words the beginning of the war, as used herein, shall be deemed to mean midnight endingthe day on which Congress has declared or shall declare war or the existence of a state of war.The words end of the war, as used herein, shall be deemed to mean the date of proclamation ofexchange of ratifications of the treaty of peace, unless the President shall, by proclamation,declare a prior date, in which case the date so proclaimed shall be deemed to be the end of thewar within the meaning of this Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix].


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The words bank or banks, as used herein, shall be deemed to mean and include national banks,State banks, trust companies, or other banks or banking associations doing business under thelaws of the United States, or of any State of the United States.

The words to trade, as used herein, shall be deemed to mean

(a) Pay, satisfy, compromise, or give security for the payment or satisfaction of any debt orobligation.

(b) Draw, accept, pay, present for acceptance or payment, or indorse any negotiable instrumentor chose in action.

(c) Enter into, carry on, complete, or perform any contract, agreement, or obligation.

(d) Buy or sell, loan or extend credit, trade in, deal with, exchange, transmit, transfer, assign, orotherwise dispose of, or receive any form of property.

(e) To have any form of business or commercial communication or intercourse with.

3. Acts prohibited

It shall be unlawful

(a) For any person in the United States, except with the license of the President, granted to suchperson, or to the enemy, or ally of enemy, as provided in this Act [sections 1 to 6, 7 to 39, and 41to 44 of this Appendix] to trade, or attempt to trade, either directly or indirectly, with, to, or

from, or for, or on account of, or on behalf of, or for the benefit of, any other person, withknowledge or reasonable cause to believe that such other person is an enemy or ally of enemy, oris conducting or taking part in such trade, directly or indirectly, for, or on account of, or onbehalf of, or for the benefit of, an enemy or ally of enemy.

(b) For any person, except with the license of the President, to transport or attempt to transportinto or from the United States, or for any owner, master, or other person in charge of a vessel ofAmerican registry to transport or attempt to transport from any place to any other place, anysubject or citizen of an enemy or ally of enemy nation, with knowledge or reasonable cause tobelieve that the person transported or attempted to be transported is such subject or citizen.

(c) For any person (other than a person in the service of the United States Government or of theGovernment of any nation, except that of an enemy or ally of enemy nation, and other than suchpersons or classes of persons as may be exempted hereunder by the President or by such personas he may direct), to send, or take out of, or bring into, or attempt to send, or take out of, or bringinto the United States, any letter or other writing or tangible form of communication, except inthe regular course of the mail; and it shall be unlawful for any person to send, take, or transmit,or attempt to send, take, or transmit out of the United States, any letter or other writing, book,map, plan, or other paper, picture, or any telegram, cablegram, or wireless message, or other


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form of communication intended for or to be delivered, directly or indirectly, to an enemy or allyof enemy: Provided, however, That any person may send, take, or transmit out of the UnitedStates anything herein forbidden if he shall first submit the same to the President, or to suchofficer as the President may direct, and shall obtain the license or consent of the President, undersuch rules and regulations, and with such exemptions, as shall be prescribed by the President.

(d) Whenever, during the present war, the President shall deem that the public safety demands it,he may cause to be censored under such rules and regulations as he may from time to timeestablish, communications by mail, cable, radio, or other means of transmission passing betweenthe United States and any foreign country he may from time to time specify, or which may becarried by any vessel or other means of transportation touching at any port, place, or territory ofthe United States and bound to or from any foreign country. Any person who willfully evades orattempts to evade the submission of any such communication to such censorship or willfully usesor attempts to use any code or other device for the purpose of concealing from such censorshipthe intended meaning of such communication shall be punished as provided in section sixteen ofthis Act [section 16 of this Appendix].

4. Licenses to enemy or ally of enemy insurance or

reinsurance companies; change of name; doing business in

United States

(a) Every enemy or ally of enemy insurance or reinsurance company, and every enemy or ally ofenemy, doing business within the United States through an agency or branch office, or otherwise,may within thirty days after the passage of this Act [Oct. 6, 1917], apply to the President for a

license to continue to do business; and, within thirty days after such application, the Presidentmay enter an order either granting or refusing to grant such license. The license, if granted, maybe temporary or otherwise, and for such period of time, and may contain such provisions andconditions regulating the business, agencies, managers and trustees and the control anddisposition of the funds of the company, or of such enemy or ally of enemy, as the Presidentshall deem necessary for the safety of the United States; and any license granted hereunder maybe revoked or regranted or renewed in such manner and at such times as the President shalldetermine: Provided, however, That reasonable notice of his intent to refuse to grant a license orto revoke a license granted to any reinsurance company shall be given by him to all insurancecompanies incorporated within the United States and known to the President to be doing businesswith such reinsurance company: Provided further, That no insurance company, organized within

the United States, shall be obligated to continue any existing contract, entered into prior to thebeginning of the war, with any enemy or ally of enemy insurance or reinsurance company, butany such company may abrogate and cancel any such contract by serving thirty days notice inwriting upon the President of its election to abrogate such contract.

For a period of thirty days after the passage of this Act [Oct. 6, 1917], and further pending theentry of such order by the President, after application made by any enemy or ally of enemyinsurance or reinsurance company, within such thirty days as above provided, the provisions of


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the Presidents proclamation of April sixth, nineteen hundred and seventeen, relative to agenciesin the United States of certain insurance companies, as modified by the provisions of thePresidents proclamation of July thirteenth, nineteen hundred and seventeen, relative to marineand war-risk insurance, shall remain in full force and effect so far as it applies to such Germaninsurance companies, and the conditions of said proclamation of April sixth, nineteen hundred

and seventeen, as modified by said proclamation of July thirteenth, nineteen hundred andseventeen, shall also during said period of thirty days after the passage of this Act [Oct. 6, 1917],and pending the order of the President as herein provided, apply to any enemy or ally of enemyinsurance or reinsurance company, anything in this Act [sections 1 to 6, 7 to 39, and 41 to 44 ofthis Appendix] to the contrary notwithstanding. It shall be unlawful for any enemy or ally ofenemy insurance or reinsurance company, to whom license is granted, to transmit out of theUnited States any funds belonging to or held for the benefit of such company or to use any suchfunds as the basis for the establishment directly or indirectly of any credit within or outside ofthe United States to, or for the benefit of, or on behalf of, or on account of, an enemy or ally ofenemy.

For a period of thirty days after the passage of this Act [Oct. 6, 1917], and further pending theentry of such order by the President, after application made within such thirty days by any enemyor ally of enemy, other than an insurance or reinsurance company as above provided, it shall belawful for such enemy or ally of enemy to continue to do business in this country and for anyperson to trade with, to, from, for, on account of, on behalf of or for the benefit of such enemy orally of enemy, anything in this Act [said sections] to the contrary notwithstanding: Provided,however, That the provisions of sections three and sixteen hereof [sections 3 and 16 of thisAppendix] shall apply to any act or attempted act of transmission or transfer of money or otherproperty out of the United States and to the use or attempted use of such money or property asthe basis for the establishment of any credit within or outside of the United States to, or for thebenefit of, or on behalf of, or on account of, an enemy or ally of enemy.

If no license is applied for within thirty days after the passage of this Act [Oct. 6, 1917], or if alicense shall be refused to any enemy or ally of enemy, whether insurance or reinsurancecompany, or other person, making application, or if any license granted shall be revoked by thePresident, the provisions of sections three and sixteen hereof [sections 3 and 16 of thisAppendix] shall forthwith apply to all trade or to any attempt to trade with, to, from, for, buy, onaccount of, or on behalf of, or for the benefit of such company or other person: Provided,however, That after such refusal or revocation, anything in this Act [said sections] to the contrarynotwithstanding, it shall be lawful for a policyholder or for an insurance company, not an enemyor ally of enemy, holding insurance or having effected reinsurance in or with such enemy or allyof enemy insurance or reinsurance company, to receive payment of, and for such enemy or allyof enemy insurance or reinsurance company to pay any premium, return premium, claim, money,security, or other property due or which may become due on or in respect to such insurance orreinsurance in force at the date of such refusal or revocation of license; and nothing in this Act[said sections] shall vitiate or nullify then existing policies or contracts of insurance orreinsurance, or the conditions thereof; and any such policyholder or insurance company, not anenemy or ally of enemy, having any claim to or upon money or other property of the enemy orally of enemy insurance or reinsurance company in the custody or control of the alien propertycustodian, hereinafter provided for, or of the Treasurer of the United States, may make


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application for the payment thereof and may institute suit as provided in section nine hereof[section 9 of this Appendix].

(b) During the present war, no enemy, or ally of enemy, and no partnership of which he is amember or was a member at the beginning of the war, shall for any purpose assume or use any

name other than that by which such enemy or partnership was ordinarily known at the beginningof the war, except under license from the President.Whenever, during the present war, in the opinion of the President the public safety or publicinterest requires, the President may prohibit any or all foreign insurance companies from doingbusiness in the United States, or the President may license such company or companies to dobusiness upon such terms as he may deem proper.

5. Suspension of provisions relating to ally of enemy;

regulation of transactions in foreign exchange of gold or

silver, property transfers, vested interests, enforcement andpenalties

(a) The President, if he shall find it compatible with the safety of the United States and with thesuccessful prosecution of the war, may, by proclamation, suspend the provisions of this Act[sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix] so far as they apply to an ally of enemy,and he may revoke or renew such suspension from time to time; and the President may grantlicenses, special or general, temporary or otherwise, and for such period of time and containingsuch provisions and conditions as he shall prescribe, to any person or class of persons to dobusiness as provided in subsection (a) of section four hereof [section 4(a) of this Appendix], andto perform any act made unlawful without such license in section three hereof [section 3 of thisAppendix], and to file and prosecute applications under subsection (b) of section ten hereof[section 10(b) of this Appendix]; and he may revoke or renew such licenses from time to time, ifhe shall be of opinion that such grant or revocation or renewal shall be compatible with thesafety of the United States and with the successful prosecution of the war; and he may make suchrules and regulations, not inconsistent with law, as may be necessary and proper to carry out theprovisions of this Act [said sections]; and the President may exercise any power or authorityconferred by this Act [said sections] through such officer or officers as he shall direct.

If the President shall have reasonable cause to believe that any act is about to be performed inviolation of section three hereof [section 3 of this Appendix] he shall have authority to order thepostponement of the performance of such act for a period not exceeding ninety days, pendinginvestigation of the facts by him.

(b)

(1) During the time of war, the President may, through any agency that he may designate, andunder such rules and regulations as he may prescribe, by means of instructions, licenses, orotherwise


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(A) investigate, regulate, or prohibit, any transactions in foreign exchange, transfers of credit orpayments between, by, through, or to any banking institution, and the importing, exporting,hoarding, melting, or earmarking of gold or silver coin or bullion, currency or securities, and

(B) investigate, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisitionholding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, ordealing in, or exercising any right, power, or privilege with respect to, or transactions involving,any property in which any foreign country or a national thereof has any interest, by any person,or with respect to any property, subject to the jurisdiction of the United States; and any propertyor interest of any foreign country or national thereof shall vest, when, as, and upon the terms,directed by the President, in such agency or person as may be designated from time to time bythe President, and upon such terms and conditions as the President may prescribe such interest orproperty shall be held, used, administered, liquidated, sold, or otherwise dealt with in the interestof and for the benefit of the United States, and such designated agency or person may performany and all acts incident to the accomplishment or furtherance of these purposes; and the

President shall, in the manner hereinabove provided, require any person to keep a full record of,and to furnish under oath, in the form of reports or otherwise, complete information relative toany act or transaction referred to in this subdivision either before, during, or after the completionthereof, or relative to any interest in foreign property, or relative to any property in which anyforeign country or any national thereof has or has had any interest, or as may be otherwisenecessary to enforce the provisions of this subdivision, and in any case in which a report couldbe required, the President may, in the manner hereinabove provided, require the production, or ifnecessary to the national security or defense, the seizure, of any books of account, records,contracts, letters, memoranda, or other papers, in the custody or control of such person.

(2) Any payment, conveyance, transfer, assignment, or delivery of property or interest therein,made to or for the account of the United States, or as otherwise directed, pursuant to thissubdivision or any rule, regulation, instruction, or direction issued hereunder shall to the extentthereof be a full acquittance and discharge for all purposes of the obligation of the person makingthe same; and no person shall be held liable in any court for or in respect to anything done oromitted in good faith in connection with the administration of, or in pursuance of and in relianceon, this subdivision, or any rule, regulation, instruction, or direction issued hereunder.

(3) As used in this subdivision the term United States means the United States and any placesubject to the jurisdiction thereof: Provided, however, That the foregoing shall not be construedas a limitation upon the power of the President, which is hereby conferred, to prescribe from timeto time, definitions, not inconsistent with the purposes of this subdivision, for any or all of theterms used in this subdivision. As used in this subdivision the term person means anindividual, partnership, association, or corporation.

(4) The authority granted to the President by this section does not include the authority toregulate or prohibit, directly or indirectly, the importation from any country, or the exportation toany country, whether commercial or otherwise, regardless of format or medium of transmission,of any information or informational materials, including but not limited to, publications, films,posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD


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ROMs, artworks, and news wire feeds. The exports exempted from regulation or prohibition bythis paragraph do not include those which are otherwise controlled for export under section 5 ofthe Export Administration Act of 1979 [section 2404 of this Appendix], or under section 6 ofthat Act [section 2405 of this Appendix] to the extent that such controls promote thenonproliferation or antiterrorism policies of the United States, or with respect to which acts are

prohibited by chapter37 of title 18, United States Code.

6. Alien Property Custodian; general powers and duties

The President is authorized to appoint, prescribe the duties of, and fix the salary of an official tobe known as the alien property custodian, who shall be empowered to receive all money andproperty in the United States due or belonging to an enemy, or ally of enemy, which may bepaid, conveyed, transferred, assigned, or delivered to said custodian under the provisions of thisAct [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix]; and to hold, administer, and accountfor the same under the general direction of the President and as provided in this Act [said

sections]. The President may further employ in the District of Columbia and elsewhere and fixthe compensation of such clerks, attorneys, investigators, accountants, and other employees as hemay find necessary for the due administration of the provisions of this Act [said sections];Provided, That such clerks, investigators, accountants, and other employees shall be appointedfrom lists of eligibles to be supplied by the Civil Service Commission [1] and in accordance withthe civil-service law.

[1] See Transfer of Functions note below.

6a. Incurment of expenses by Office of Alien Property

Custodian

After June 30, 1945, the Office of Alien Property Custodian shall not incur any obligations forthe expenses of said Office except pursuant to a further annual authorization by the Congressspecifically therefor.

6b. Omitted

7. Lists of enemy or ally of enemy officers, directors or

stockholders of corporations in United States; acts

constituting trade with enemy prior to passage of Act;


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conveyance of property to custodian; voluntary payment to

custodian by holder; acts under order, rule, or regulation

(a) Every corporation incorporated within the United States, and every unincorporatedassociation, or company, or trustee, or trustees within the United States, issuing shares orcertificates representing beneficial interests, shall, under such rules and regulations as thePresident may prescribe and, within sixty days after the passage of this Act [Oct. 6, 1917] and atsuch other times thereafter as the President may require, transmit to the alien property custodiana full list, duly sworn to, of every officer, director, or stockholder known to be, or whom therepresentative of such corporation, association, company, or trustee has reasonable cause tobelieve to be an enemy or ally of enemy resident within the territory, or a subject or citizenresiding outside of the United States, of any nation with which the United States is at war, orresident within the territory, or a subject or citizen residing outside of the United States, of anyally of any nation with which the United States is at war, together with the amount of stock or

shares owned by each such officer, director, or stockholder, or in which he has any interest.

The President may also require a similar list to be transmitted of all stock or shares owned onFebruary third, nineteen hundred and seventeen, by any person now defined as an enemy or allyof enemy, or in which any such person had any interest; and he may also require a list to betransmitted of all cases in which said corporation, association, company, or trustee hasreasonable cause to believe that the stock or shares on February third, nineteen hundred andseventeen, were owned or are owned by such enemy or ally of enemy, though standing on thebooks in the name of another: Provided, however, That the name of any such officer, director, orstockholder, shall be stricken permanently or temporarily from such list by the alien propertycustodian when he shall be satisfied that he is not such enemy or ally of enemy.

Any person in the United States who holds or has or shall hold or have custody or control of anyproperty beneficial or otherwise, alone or jointly with others, of, for, or on behalf of an enemy orally of enemy, or of any person whom he may have reasonable cause to believe to be an enemyor ally of enemy and any person in the United States who is or shall be indebted in any way to anenemy or ally of enemy, or to any person whom he may have reasonable cause to believe to bean enemy or ally of enemy, shall, with such exceptions and under such rules and regulations asthe President shall prescribe, and within thirty days after the passage of this Act [Oct. 6, 1917],or within thirty days after such property shall come within his custody or control, or after suchdebt shall become due, report the fact to the alien-property custodian by written statement underoath containing such particulars as said custodian shall require. The President may also require asimilar report of all property so held, of, for, or on behalf of, and of all debts so owed to, anyperson now defined as an enemy or ally of enemy, on February third, nineteen hundred andseventeen: Provided, That the name of any person shall be stricken from the said report by thealien property custodian, either temporarily or permanently, when he shall be satisfied that suchperson is not an enemy or ally of enemy. The President may extend the time for filing the lists orreports required by this section for an additional period not exceeding ninety days.


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(b) Nothing in this Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix] contained shallrender valid or legal, or be construed to recognize as valid or legal, any act or transactionconstituting trade with, to, from, for or on account of, or on behalf or for the benefit of an enemyperformed or engaged in since the beginning of the war and prior to the passage of this Act [saidsections] or any such act or transaction hereafter performed or engaged in except as authorized

hereunder, which would otherwise have been or be void, illegal, or invalid at law. Noconveyance, transfer, delivery, payment, or loan of money or other property, in violation ofsection three hereof [section 3 of this Appendix], made after the passage of this Act [Oct. 6,1917] and not under license as herein provided shall confer or create any right or remedy inrespect thereof; and no person shall by virtue of any assignment, indorsement, or delivery to himof any debt, bill, note, or other obligation or chose in action by, from, or on behalf of, or onaccount of, or for the benefit of an enemy or ally of enemy have any right or remedy against thedebtor, obligor, or other person liable to pay, fulfill, or perform the same unless said assignment,indorsement, or delivery was made prior to the beginning of the war or shall be made underlicense as herein provided, or unless, if made after the beginning of the war and prior to the dateof passage of this Act [Oct. 6, 1917], the person to whom the same was made shall prove lack of

knowledge and of reasonable cause to believe on his part that the same was made by, from or onbehalf of, or on account of, or for the benefit of an enemy or ally of enemy; and any person whoknowingly pays, discharges, or satisfies any such debt, note, bill, or other obligation or chose inaction shall, on conviction thereof, be deemed to violate section three hereof [section 3 of thisAppendix]: Provided, That nothing in this Act [said sections] contained shall prevent thecarrying out, completion, or performance of any contract, agreement, or obligation originallymade with or entered into by an enemy or ally of enemy where, prior to the beginning of the warand not in contemplation thereof, the interest of such enemy or ally of enemy devolved byassignment or otherwise upon a person not an enemy or ally of enemy, and no enemy or ally ofenemy will be benefited by such carrying out, completion, or performance otherwise than byrelease from obligation thereunder.

Nothing in this Act [said sections] shall be deemed to prevent payment of money belonging orowing to an enemy or ally of enemy to a person within the United States not an enemy or ally ofenemy, for the benefit of such person or of any other person within the United States, not anenemy or ally of enemy, if the funds so paid shall have been received prior to the beginning ofthe war and such payments arise out of transactions entered into prior to the beginning of thewar, and not in contemplation thereof: Provided, That such payment shall not be made withoutthe license of the President, general or special, as provided in this Act [said sections].

Nothing in this Act [said sections] shall be deemed to authorize the prosecution of any suit oraction at law or in equity in any court within the United States by an enemy or ally of enemyprior to the end of the war, except as provided in section ten hereof [section 10 of thisAppendix]: Provided, however, That an enemy or ally of enemy licensed to do business underthis Act [said sections] may prosecute and maintain any such suit or action so far as the samearises solely out of the business transacted within the United States under such license and solong as such license remains in full force and effect: And provided further, That an enemy or allyof enemy may defend by counsel any suit in equity or action at law which may be broughtagainst him.


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Receipt of notice from the President to the effect that he has reasonable ground to believe thatany person is an enemy or ally of enemy shall be prima facie defense to any one receiving thesame, in any suit or action at law or in equity brought or maintained, or to any right or set-off orrecoupment asserted by, such person and based on failure to complete or perform since thebeginning of the war any contract or other obligation. In any prosecution under section sixteen

hereof [section 16 of this Appendix] proof of receipt of notice from the President to the effectthat he has reasonable cause to believe that any person is an enemy or ally of enemy shall beprima facie evidence that the person receiving such notice has reasonable cause to believe suchother person to be an enemy or ally of enemy within the meaning of section three hereof [section3 of this Appendix].

(c) If the President shall so require any money or other property including (but not therebylimiting the generality of the above) patents, copyrights, applications therefor, and rights to applyfor the same, trade marks, choses in action, and rights and claims of every character anddescription owing or belonging to or held for, by, on account of, or on behalf of, or for thebenefit of, an enemy or ally of enemy not holding a license granted by the President hereunder,

which the President after investigation shall determine is so owning or so belongs or is so held,shall be conveyed, transferred, assigned, delivered, or paid over to the Alien Property Custodian,or the same may be seized by the Alien Property Custodian; and all property thus acquired shallbe held, administered and disposed of as elsewhere provided in this Act [sections 1 to 6, 7 to 39,and 41 to 44 of this Appendix].

Any requirement made pursuant to this Act [said sections], or a duly certified copy thereof, maybe filed, registered, or recorded in any office for the filing, registering, or recording ofconveyances, transfers, or assignments of any such property or rights as may be covered by suchrequirement (including the proper office for filing, registering, or recording conveyances,transfers, or assignments of patents, copyrights, trade-marks, or any rights therein or any otherrights); and if so filed, registered, or recorded shall impart the same notice and have the sameforce and effect as a duly executed conveyance, transfer, or assignment to the Alien PropertyCustodian so filed, registered, or recorded.

Whenever any such property shall consist of shares of stock or other beneficial interest in anycorporation, association, or company or trust, it shall be the duty of the corporation, association,or company or trustee or trustees issuing such shares or any certificates or other instrumentsrepresenting the same or any other beneficial interest to cancel upon its, his, or their books allshares of stock or other beneficial interest standing upon its, his, or their books in the name ofany person or persons, or held for, on account of, or on behalf of, or for the benefit of any personor persons who shall have been determined by the President, after investigation, to be an enemyor ally of enemy, and which shall have been required to be conveyed, transferred, assigned, ordelivered to the Alien Property Custodian or seized by him, and in lieu thereof to issuecertificates or other instruments for such shares or other beneficial interest to the Alien PropertyCustodian or otherwise, as the Alien Property Custodian shall require.

The sole relief and remedy of any person having any claim to any money or other propertyheretofore or hereafter conveyed, transferred, assigned, delivered, or paid over to the AlienProperty Custodian, or required so to be, or seized by him shall be that provided by the terms of


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this Act [said sections], and in the event of sale or other disposition of such property by the AlienProperty Custodian, shall be limited to and enforced against the net proceeds received therefromand held by the Alien Property Custodian or by the Treasurer of the United States.

(d) If not required to pay, convey, transfer, assign, or deliver under the provisions of subsection

(c) of this section, any person not an enemy or ally of enemy who owes to, or holds for, or onaccount of, or on behalf of, or for the benefit of an enemy or of an ally of enemy not holding alicense granted by the President hereunder, any money or other property, or to whom anyobligation or form of liability to such enemy or ally of enemy is presented for payment, may, athis option, with the consent of the President, pay, convey, transfer, assign, or deliver to the alienproperty custodian said money or other property under such rules and regulations as thePresident shall prescribe.

(e) No person shall be held liable in any court for or in respect to anything done or omitted inpursuance of any order, rule, or regulation made by the President under the authority of this Act[sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix].

Any payment, conveyance, transfer, assignment, or delivery of money or property made to thealien property custodian hereunder shall be a full acquittance and discharge for all purposes ofthe obligation of the person making the same to the extent of same. The alien property custodianand such other persons as the President may appoint shall have power to execute, acknowledge,and deliver any such instrument or instruments as may be necessary or proper to evidence uponthe record or otherwise such acquittance and discharge, and shall, in case of payment to the alienproperty custodian of any debt or obligation owed to an enemy or ally of enemy, deliver up anynotes, bonds, or other evidences of indebtedness or obligation, or any security therefor in whichsuch enemy or ally of enemy had any right or interest that may have come into the possession ofthe alien property custodian, with like effect as if he or they, respectively, were duly appointedby the enemy or ally of enemy, creditor, or obligee. The President shall issue to every person soappointed a certificate of the appointment and authority of such person, and such certificate shallbe received in evidence in all courts within the United States. Whenever any such certificate ofauthority shall be offered to any registrar, clerk, or other recording officer, Federal or otherwise,within the United States, such officer shall record the same in like manner as a power ofattorney, and such record or a duly certified copy thereof shall be received in evidence in allcourts of the United States or other courts within the United States.

8. Contracts, mortgages, or pledges against or with enemy

or ally of enemy; abrogation of contracts; suspension of

limitations

(a) Any person not an enemy or ally of enemy holding a lawful mortgage, pledge, or lien, orother right in the nature of security in property of an enemy or ally of enemy which, by law or bythe terms of the instrument creating such mortgage, pledge, or lien, or right, may be disposed ofon notice or presentation or demand, and any person not an enemy or ally of enemy who is a


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party to any lawful contract with an enemy or ally of enemy, the terms of which provide for atermination thereof upon notice or for acceleration of maturity on presentation or demand, maycontinue to hold said property, and, after default, may dispose of the property in accordance withlaw or may terminate or mature such contract by notice or presentation or demand served ormade on the alien property custodian in accordance with the law and the terms of such

instrument or contract and under such rules and regulations as the President shall prescribe; andsuch notice and such presentation and demand shall have, in all respects, the same force andeffect as if duly served or made upon the enemy or ally of enemy personally: Provided, That nosuch rule or regulation shall require that notice or presentation or demand shall be served ormade in any case in which, by law or by the terms of said instrument or contract, no notice,presentation, or demand was, prior to the passage of this Act [Oct. 6, 1917], required; and that incase were, by law or by the terms of such instrument or contract, notice is required, no longerperiod of notice shall be required: Provided further, That if, on any such disposition of property,a surplus shall remain after the satisfaction of the mortgage, pledge, lien, or other right in thenature of security, notice of that fact shall be given to the President pursuant to such rules andregulations as he may prescribe, and such surplus shall be held subject to his further order.

(b) Any contract entered into prior to the beginning of the war between any citizen of the UnitedStates or any corporation organized within the United States, and an enemy or ally of an enemy,the terms of which provide for the delivery, during or after any war in which a present enemy orally of enemy nation has been or is now engaged, of anything produced, mined, or manufacturedin the United States, may be abrogated by such citizen or corporation by serving thirty daysnotice in writing upon the alien property custodian of his or its election to abrogate such contract.

(c) The running of any statute of limitations shall be suspended with reference to the rights orremedies on any contract or obligation entered into prior to the beginning of the war betweenparties neither of whom is an enemy or ally of enemy, and containing any promise to pay orliability for payment which is evidenced by drafts or other commercial paper drawn against orsecured by funds or other property situated in an enemy or ally of enemy country, and no suitshall be maintained on any such contract or obligation in any court within the United States untilafter the end of the war, or until the said funds or property shall be released for the payment orsatisfaction of such contract or obligation: Provided, however, That nothing herein containedshall be construed to prevent the suspension of the running of the statute of limitations in allother cases where such suspension would occur under existing law.

9. Claims to property transferred to custodian; notice of

claim; filing; return of property; suits to recover; sale of

claimed property in time of war or during national

emergency

(a) Any person not an enemy or ally of enemy claiming any interest, right, or title in any moneyor other property which may have been conveyed, transferred, assigned, delivered, or paid to the


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Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer of theUnited States, or to whom any debt may be owing from an enemy or ally of enemy whoseproperty or any part thereof shall have been conveyed, transferred, assigned, delivered, or paid tothe Alien Property Custodian or seized by him hereunder and held by him or by the Treasurer ofthe United States may file with the said custodian a notice of his claim under oath and in such

form and containing such particulars as the said custodian shall require; and the President, ifapplication is made therefor by the claimant, may order the payment, conveyance, transfer,assignment, or delivery to said claimant of the money or other property so held by the AlienProperty Custodian or by the Treasurer of the United States, or of the interest therein to whichthe President shall determine said claimant is entitled: Provided, That no such order by thePresident shall bar any person from the prosecution of any suit at law or in equity against theclaimant to establish any right, title, or interest which he may have in such money or otherproperty. If the President shall not so order within sixty days after the filing of such applicationor if the claimant shall have filed the notice as above required and shall have made noapplication to the President, said claimant may institute a suit in equity in the United StatesDistrict Court for the District of Columbia or in the district court of the United States for the

district in which such claimant resides, or, if a corporation, where it has its principal place ofbusiness (to which suit the Alien Property Custodian or the Treasurer of the United States, as thecase may be, shall be made a party defendant), to establish the interest, right, title, or debt soclaimed, and if so established the court shall order the payment, conveyance, transfer,assignment, or delivery to said claimant of the money or other property so held by the AlienProperty Custodian or by the Treasurer of the United States or the interest therein to which thecourt shall determine said claimant is entitled. If suit shall be so instituted, then such money orproperty shall be retained in the custody of the Alien Property Custodian, or in the Treasury ofthe United States, as provided in this Act [sections 1 to 6, 7 to 39, and 41 to 44 of thisAppendix], and until any final judgment or decree which shall be entered in favor of the claimantshall be fully satisfied by payment or conveyance, transfer, assignment, or delivery by thedefendant, or by the Alien Property Custodian, or Treasurer of the United States on order of thecourt, or until final judgment or decree shall be entered against the claimant or suit otherwiseterminated: Provided further, That upon a determination made by the President, in time of war orduring any national emergency declared by the President, that the interest and welfare of theUnited States require the sale of any property or interest or any part thereof claimed in any suitfiled under this subsection and pending on or after the date of enactment [Oct. 22, 1962] of thisproviso the Alien Property Custodian or any successor officer, or agency may sell such propertyor interest or part thereof, in conformity with law applicable to sales of property by him, at anytime prior to the entry of final judgment in such suit. No such sale shall be made until thirty dayshave passed after the publication of notice in the Federal Register of the intention to sell. The netproceeds of any such sale shall be deposited in a special account established in the Treasury, andshall be held in trust by the Secretary of the Treasury pending the entry of final judgment in suchsuit. Any recovery of any claimant in any such suit in respect of the property or interest or partthereof so sold shall be satisfied from the net proceeds of such sale unless such claimant, withinsixty days after receipt of notice of the amount of net proceeds of sale serves upon the AlienProperty Custodian, or any successor officer or agency, and files with the court an election towaive all claims to the net proceeds, or any part thereof, and to claim just compensation instead.If the court finds that the claimant has established an interest, right, or title in any property inrespect of which such an election has been served and filed, it shall proceed to determine the


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amount which will constitute just compensation for such interest, right, or title, and shall orderpayment to the claimant of the amount so determined. An order for the payment of justcompensation hereunder shall be a judgment against the United States and shall be payable firstfrom the net proceeds of the sale in an amount not to exceed the amount the claimant would havereceived had he elected to accept his proportionate part of the net proceeds of the sale, and the

balance, if any, shall be payable in the same manner as are judgments in cases arising undersection 1346 of title 28, United States Code. The Alien Property Custodian or any successorofficer or agency shall, immediately upon the entry of final judgment, notify the Secretary of theTreasury of the determination by final judgment of the claimants interest and right to theproportionate part of the net proceeds from the sale, and the final determination by judgment ofthe amount of just compensation in the event the claimant has elected to recover justcompensation for the interest in the property he claimed.

(b) In respect of all money or other property conveyed, transferred, assigned, delivered, or paidto the Alien Property Custodian or seized by him hereunder and held by him or by the Treasurerof the United States, if the President shall determine that the owner thereof at the time such

money or other property was required to be so conveyed, transferred, assigned, delivered, or paidto the Alien Property Custodian or at the time when it was voluntarily delivered to him or wasseized by him was

(1) A citizen or subject of any nation or State or free city other than Germany or Austria orHungary or Austria-Hungary, and is at the time of the return of such money or other propertyhereunder a citizen or subject of any such nation or State or free city; or

(2) A woman who, at the time of her marriage, was a subject or citizen of a nation which hasremained neutral in the war, or of a nation which was associated with the United States in theprosecution of said war, and who, prior to April 6, 1917, intermarried with a subject or citizen ofGermany or Austria-Hungary and that the money or other property concerned was not acquiredby such woman, either directly or indirectly from any subject or citizen of Germany or Austria-Hungary subsequent to January 1, 1917; or

(3) A woman who at the time of her marriage was a citizen of the United States, and who prior toApril 6, 1917, intermarried with a subject or citizen of Germany or Austria-Hungary, and that themoney or other property concerned, was not acquired by such woman, either directly orindirectly, from any subject or citizen of Germany or Austria-Hungary subsequent to January 1,1917; or who was a daughter of a resident citizen of the United States and herself a resident orformer resident thereof, or the minor daughter or daughters of such woman, she being deceased;or

(3A) An individual who was at such time a citizen or subject of Germany, Austria, Hungary, orAustria-Hungary, or not a citizen or subject of any nation, state or free city, and that the moneyor other property concerned was acquired by such individual while a bona fide resident of theUnited States, and that such individual, on January 1, 1926, and at the time of the return of themoney or other property, shall be a bona fide resident of the United States; or


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(3B) Any individual who at such time was not a subject or citizen of Germany, Austria,Hungary, or Austria-Hungary, and who is now a citizen or subject of a neutral or allied country:Provided, however, That nothing contained herein shall be construed as limiting or abrogatingany existing rights of an individual under the provisions of this Act [sections 1 to 6, 7 to 39, and41 to 44 of this Appendix]; or

(4) A citizen or subject of Germany or Austria or Hungary or Austria-Hungary and was at thetime of the severance of diplomatic relations between the United States and such nations,respectively, accredited to the United States as a diplomatic or consular officer of any suchnation, or the wife or minor child of such officer, and that the money or other property concernedwas within the territory of the United States by reason of the service of such officer in suchcapacity; or

(5) A citizen or subject of Germany or Austria-Hungary, who by virtue of the provisions ofsections 4067, 4068, 4069, and 4070 of the Revised Statutes [sections 21 to 24 of title 50] and ofthe proclamations and regulations thereunder, was transferred, after arrest, into the custody of the

War Department of the United States for detention during the war and is at the time of the returnof his money or other property hereunder living within the United States; or

(6) A partnership, association, or other unincorporated body of individuals outside the UnitedStates, or a corporation incorporated within any country other than the United States, and wasentirely owned at such time by subjects or citizens of nations, States, or free cities other thanGermany or Austria or Hungary or Austria-Hungary and is so owned at the time of the return ofits money or other property hereunder; or

(7) The Government of Bulgaria or Turkey, or any political or municipal subdivision thereof; or

(8) The Government of Germany or Austria or Hungary or Austria-Hungary, and that the moneyor other property concerned was the diplomatic or consular property of such Government; or

(9) An individual who was at such time a citizen or subject of Germany, Austria, Hungary, orAustria-Hungary, or who is not a citizen or subject of any nation, State or free city, and that suchmoney or other property, or the proceeds thereof, if the same has been converted, does notexceed in value the sum of $10,000, or although exceeding in value the sum of $10,000 isnevertheless susceptible of division, and the part thereof to be returned hereunder does notexceed in value the sum of $10,000: Provided, That an individual shall not be entitled, under thisparagraph, to the return of any money or other property owned by a partnership, association,unincorporated body of individuals, or corporation at the time it was conveyed, transferred,assigned, delivered, or paid to the Alien Property Custodian, or seized by him hereunder; or

(10) A partnership, association, other unincorporated body of individuals, or corporation, andthat it is not otherwise entitled to the return of its money or other property, or any part thereof,under this section, and that such money or other property, or the proceeds thereof, if the same hasbeen converted, does not exceed in value the sum of $10,000, or although exceeding in value thesum of $10,000, is nevertheless susceptible of division, and the part thereof to be returnedhereunder does not exceed in value the sum of $10,000; or


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(11) A partnership, association, or other unincorporated body of individuals, having its principalplace of business within any country other than Germany, Austria, Hungary, or Austria-Hungary,or a corporation, organized or incorporated within any country other than Germany, Austria,Hungary, or Austria-Hungary, and that the control of, or more than 50 per centum of the interests

or voting power in, any such partnership, association, other unincorporated body of individuals,or corporation, was at such time, and is at the time of the return of any money or other property,vested in citizens or subjects of nations, States, or free cities other than Germany, Austria,Hungary, or Austria-Hungary: Provided, however, That this subsection shall not affect any rightswhich any citizen or subject may have under paragraph (1) of this subsection; or

(12) A partnership, association, or other unincorporated body of individuals, or a corporation,and was entirely owned at such time by subjects or citizens of nations, States, or free cities otherthan Austria or Hungary, or Austria-Hungary and is so owned at the time of the return of itsmoney or other property, and has filed the written consent provided for in subsection (m) of thissection; or

(13) A partnership, association or other unincorporated body of individuals, having its principalplace of business at such time within any country other than Austria, Hungary, or Austria-Hungary, or a corporation organized or incorporated within any country other than Austria,Hungary, or Austria-Hungary, and that the written consent provided for in subsection (m) hasbeen filed; or

(14) An individual who at such time was a citizen or subject of Germany or who, at the time ofthe return of any money or other property, is a citizen or subject of Germany or is not a citizen orsubject of any nation, State, or free city, and that the written consent provided for in subsection(m) of this section has been filed; or

(15) Repealed. Aug. 6, 1956, ch. 1016, 3, 70 Stat. 1073.

(16) An individual, partnership, association, or other unincorporated body of individuals, or acorporation, and that the written consent provided for in subsection (m) has been filed, and thatno suit or proceeding against the United States or any agency thereof is pending in respect ofsuch return, and that such individual has filed a written waiver renouncing on behalf of himself,his heirs, successors, and assigns any claim based upon the fact that at the time of such return hewas in fact entitled to such return under any other provision of this Act [sections 1 to 6, 7 to 39,and 41 to 44 of this Appendix]; or

(17) A partnership, association, or other unincorporated body of individuals, or a corporation,and was entirely owned at such time by citizens of Austria and is so owned at the time of thereturn of its money or other property; or

(18) A partnership, association, or other unincorporated body of individuals, having its principalplace of business at such time within Austria, or a corporation organized or incorporated withinAustria; or


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(19) An individual who at such time was a citizen of Austria or who, at the time of the return ofany money or other property, is a citizen of Austria; or

(20) A partnership, association, or other unincorporated body of individuals, or a corporation,and was entirely owned at such time by citizens of Hungary and is so owned at the time of the

return of its money or other property; or

(21) A partnership, association, or other unincorporated body of individuals, having its principalplace of business at such time within Hungary, or a corporation organized or incorporated withinHungary; or

(22) An individual who at such time was a citizen of Hungary or who, at the time of the return ofany money or other property, is a citizen of Hungary;

Then the President, without any application being made therefor, may order the payment,conveyance, transfer, assignment, or delivery of such money or other property held by the Alien

Property Custodian or by the Treasurer of the United States, or of the interest therein to whichthe President shall determine such person entitled, either to the said owner or to the person bywhom said property was conveyed, transferred, assigned, delivered, or paid over to the AlienProperty Custodian: Provided, That no person shall be deemed or held to be a citizen or subjectof Germany or Austria or Hungary or Austria-Hungary for the purposes of this section, eventhough he was such citizen or subject at the time first specified in this subsection, if he hasbecome or shall become, ipso facto or through exercise of option, a citizen or subject of anynation or State or free city other than Germany, Austria, or Hungary, (first) under the terms ofsuch treaties of peace as have been or may be concluded subsequent to November 11, 1918,between Germany or Austria or Hungary (of the one part) and the United States and/or three ormore of the following-named powers: The British Empire, France, Italy, and Japan (of the otherpart), or (second) under the terms of such treaties as have been or may be concluded in pursuanceof the treaties of peace aforesaid between any nation, State, or free city (of the one part) whoseterritories, in whole or in part, on August 4, 1914, formed a portion of the territory of Germanyor Austria-Hungary and the United States and/or three or more of the following-named powers:The British Empire, France, Italy, and Japan (of the other part). For the purposes of this sectionany citizen or subject of a State or free city which at the time of the proposed return of money orother property of such citizen or subject hereunder forms a part of the territory of any one of thefollowing nations: Germany, Austria, or Hungary, shall be deemed to be a citizen or subject ofsuch nation. And the receipt of the said owner or of the person by whom said money or otherproperty was conveyed, transferred, assigned, delivered, or paid over to the Alien PropertyCustodian shall be a full acquittance and discharge of the Alien Property Custodian or theTreasurer of the United States, as the case may be, and of the United States in respect to allclaims of all persons heretofore or hereafter claiming any right, title, or interest in said money orother property, or compensation or damages arising from the capture of such money or otherproperty by the President or the Alien Property Custodian: Provided further, however, Thatexcept as herein provided no such action by the President shall bar any person from theprosecution of any suit at law or in equity to establish any right, title, or interest which he mayhave therein.


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(c) Any person whose money or other property the President is authorized to return under theprovisions of subsection (b) hereof may file notice of claim for the return of such money or otherproperty, as provided in subsection (a) hereof, and thereafter may make application to thePresident for allowance of such claim and/or may institute suit in equity to recover such moneyor other property, as provided in said subsection, and with like effect. The President or the court,

as the case may be, may make the same determinations with respect to citizenship and otherrelevant facts that the President is authorized to make under the provisions of subsection (b)hereof.

(d) Whenever an individual, deceased, would have been entitled, if living, to the return of anymoney or other property without filing the written consent provided for in subsection (m), thenhis legal representative may proceed for the return of such money or other property in the samemanner as such individual might proceed if living, and such money or other property may bereturned to such legal representative without requiring the appointment of an administrator, or anancillary administrator, by a court in the United States, or to any such ancillary administrator, fordistribution directly to the persons entitled thereto. Return in accordance with the provisions of

this subsection may be made in any case where an application or court proceeding by any legalrepresentative, under the provisions of this subsection before its amendment by the Settlement ofWar Claims Act of 1928 [Act Mar. 10, 1928, ch. 167, 12(a), 45 Stat. 271] is pending andundetermined at the time of the enactment of such Act. All bonds or other security given underthe provisions of this subsection before such amendment shall be canceled or released and allsureties thereon discharged.

(e) No money or other property shall be returned nor any debt allowed under this section to anyperson who is a citizen or subject of any nation which was associated with the United States inthe prosecution of the war, unless such nation in like case extends reciprocal rights to citizens ofthe United States: Provided, That any arrangement made by a foreign nation for the release ofmoney and other property of American citizens and certified by the Secretary of State to theAttorney General as fair and the most advantageous arrangement obtainable shall be regarded asmeeting this requirement; nor in any event shall a debt be allowed under this section unless itwas owing to and owned by the claimant prior to October 6, 1917, and as to claimants other thancitizens of the United States unless it arose with reference to the money or other property held bythe Alien Property Custodian or Treasurer of the United States hereunder; nor shall a debt beallowed under this section unless notice of the claim has been filed, or application therefor hasbeen made, prior to the date of the enactment of the Settlement of War Claims Act of 1928 [ActMar. 10, 1928, ch. 167, 45 Stat. 254].

(f) Except as herein provided, the money or other property conveyed, transferred, assigned,delivered, or paid to the Alien Property Custodian, shall not be liable to lien, attachment,garnishment, trustee process, or execution, or subject to any order or decree of any court.

(g) Whenever an individual, deceased, would have been entitled, if living, to the return of anymoney or other property upon filing the written consent provided for in subsection (m), then hislegal representative may proceed for the return of such money or other property in the samemanner as such individual might proceed if living, and such money or other property may bereturned, upon filing the written consent provided for in subsection (m), to such legal


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representative without requiring the appointment of an administrator, or an ancillaryadministrator, by a court in the United States, or to any such ancillary administrator, fordistribution to the persons entitled thereto. This subsection shall not be construed asextinguishing or diminishing any right which any citizen of the United States may have hadunder this subsection prior to its amendment by the Settlement of War Claims Act of 1928 [Act

Mar. 10, 1928, ch. 167, 12(c), 45 Stat. 271] to receive in full his interest in the property of anyindividual dying before such amendment.

(h) The aggregate value of the money or other property returned under paragraphs (9) and (10) ofsubsection (b) to any one person, irrespective of the number of trusts involved, shall in no caseexceed $10,000.

(i) For the purposes of paragraphs (9) and (10) of subsection (b) of this section accumulated netincome, dividends, interest, annuities, and other earnings, shall be considered as part of theprincipal.

(j) The Alien Property Custodian is authorized and directed to return to the person entitledthereto, whether or not an enemy or ally of enemy and regardless of the value, any patent,trademark, print, label, copyright, or right therein or claim thereto, which was conveyed,transferred, assigned, or delivered to the Alien Property Custodian, or seized by him, and whichhas not been sold, licensed, or otherwise disposed of under the provisions of this Act [sections 1to 6, 7 to 39, and 41 to 44 of this Appendix], and to return any such patent, trademark, print,label, copyright, or right therein or claim thereto, which has been licensed, except that anypatent, trade-mark, print, label, copyright, or right therein or claim thereto, which is returned bythe Alien Property Custodian and which has been licensed, or in respect of which any contracthas been entered into, or which is subject to any lien or encumbrance, shall be returned subject tothe license, contract, lien, or encumbrance.

(k) Except as provided in section 27 [section 27 of this Appendix], paragraphs (12) to (22), bothinclusive, of subsection (b) of this section shall apply to the proceeds received from the sale,license, or other disposition of any patent, trademark, print, label, copyright, or right therein orclaim thereto, conveyed, transferred, assigned, or delivered to the Alien Property Custodian, orseized by him.

(l) This section shall apply to royalties paid to the Alien Property Custodian, in accordance witha judgment or decree in a suit brought under subsection (f) of section 10 [section 10(f) of thisAppendix]; but shall not apply to any other money paid to the Alien Property Custodian undersection 10 [section 10 of this Appendix].

(m) No money or other property shall be returned under paragraph (12), (13), (14), or (16) ofsubsection (b) or under subsection (g) or (n) or (to the extent therein provided) under subsection

(p), unless the person entitled thereto files a written consent to a postponement of the return of anamount equal to 20 per centum of the aggregate value of such money or other property (at thetime, as nearly as may be, of the return), as determined by the Alien Property Custodian, and theinvestment of such amount in accordance with the provisions of section 25 [section 25 of this


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Appendix]. Such amount shall be deducted from the money to be returned to such person, so faras possible, and the balance shall be deducted from the proceeds of the sale of so much of theproperty as may be necessary, unless such person pays the balance to the Alien PropertyCustodian, except that no property shall be sold prior to the expiration of six years from the dateof the enactment of the Settlement of War Claims Act of 1928 [Act Mar. 10, 1928, ch. 167, 45

Stat. 254] without the consent of the person entitled thereto. The amounts so deducted shall bereturned to the persons entitled thereto as provided in subsection (f) of section 25 [section 25(f)of this Appendix]. The sale of any such property shall be made in accordance with the provisionsof section 12 [section 12 of this Appendix], except that the provisions of such section relating tosales or resales to, or for the benefit of, citizens of the United States shall not be applicable. Ifsuch aggregate value of the money or other property to be returned under paragraph (12), (13),(14), or (16) of subsection (b) or under subsection (g) is less than $2,000, then the writtenconsent shall not be required and the money or other property shall be returned in full withoutthe temporary retention and investment of 20 per centum thereof.

(n) In the case of property consisting of stock or other interest in any corporation, association,

company, or trust, or of bonded or other indebtedness thereof, evidenced by certificates of stockor by bonds or by other certificates of interest therein or indebtedness thereof, or consisting ofdividends or interest or other accruals thereon, where the right, title, and interest in the property(but not the actual certificate or bond or other certificate of interest or indebtedness) wasconveyed, transferred, assigned, delivered, or paid to the Alien Property Custodian, or seized byhim, if the President determines that the owner thereof or of any interest therein has acquiredsuch ownership by assignment, transfer, or sale of such certificate or bond or other certificate ofinterest or indebtedness, (it being the intent of this subsection that such assignment, transfer, orsale shall not be deemed invalid hereunder by reason of such conveyance, transfer, assignment,delivery, or payment to the Alien Property Custodian or seizure by him) and that the writtenconsent provided for in subsection (m) of this section has been filed, then the President maymake in respect of such property an order of the same character, upon the same conditions, andwith the same effect, as in cases provided for in subsection (b), including the benefits ofsubsection (c).

(o) The provisions of paragraph (12), (13), (14), (17), (18), (19), (20), (21), or (22) of subsection(b), or of subsection (m) or (n) of this section, and (except to the extent therein provided) theprovisions of paragraph (16) of subsection (b), shall not be construed as diminishing orextinguishing any right under any other provision of this Act [sections 1 to 6, 7 to 39, and 41 to44 of this Appendix] in force immediately prior to the enactment of the Settlement of WarClaims Act of 1928 [Act Mar. 10, 1928, ch. 167, 45 Stat. 254].

(p) The Alien Property Custodian shall transfer the money or other property in the trust of anypartnership, association, or other unincorporated body of individuals, or corporation, theexistence of which has terminated, to trusts in the names of the persons (including the GermanGovernment and members of the former ruling family) who have succeeded to its claim orinterest; and the provisions of subsection (a) of this section relating to the collection of a debt (byorder of the President or of a court) out of money or other property held by the Alien PropertyCustodian or the Treasurer of the United States shall be applicable to the debts of such successorand any such debt may be collected out of the money or other property in any of such trusts if not


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returnable under subsection (a) of this section. Subject to the above provisions as to thecollection of debts, each such successor (except the German Government and members of theformer ruling family) may proceed for the return of the amount so transferred to his trust, in thesame manner as such partnership, association, or other unincorporated body of individuals, orcorporation might proceed if still in existence. If such partnership, association, or other

unincorporated body of individuals, or corporation, would have been entitled to the return of itsmoney or other property only upon filing the written consent provided for in subsection (m), thenthe successor shall be entitled to the return under this subsection only upon filing such writtenconsent.

(q) The return of money or other property under paragraph (15), (17), (18), (19), (20), (21), or(22) of subsection (b) (relating to the return of Austrian and Hungarian nationals) shall be subjectto the limitations imposed by subsections (d) and (e) of section 7 of the Settlement of WarClaims Act of 1928 [Act Mar. 10, 1928, ch. 167, 7(d), (e), 45 Stat. 265, 266].

10. Acts permitted; applications for patents, or registrationof trade-marks or copyrights; payment of tax in relation

thereto; licenses under enemy owned patent or copyright;

statements by licensees; term and cancellation; suits against

licensees; restraining infringements; powers of attorney;

keeping secret inventions

Nothing contained in this Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix] shall beheld to make unlawful any of the following acts:

(a) Repealed. Aug. 8, 1946, ch. 910, 13, 60 Stat. 944.

(b) Any citizen of the United States, or any corporation organized within the United States, may,when duly authorized by the President, pay to an enemy or ally of enemy any tax, annuity, or feewhich may be required by the laws of such enemy or ally of enemy nation in relation to patentsand trade-marks, prints, labels, and copyrights; and any such citizen or corporation may file andprosecute an application for letters patent or for registration of trade-mark, print, label, orcopyright in the country of an enemy, or of an ally of enemy after first submitting suchapplication to the President and receiving license so to file and prosecute, and to pay the feesrequired by law and customary agents fees, the maximum amount of which in each case shall besubject to the control of the President.

(c) Any citizen of the United States or any corporation organized within the United Statesdesiring to manufacture, or cause to be manufactured, a machine, manufacture, composition ofmatter, or design, or to carry on, or to use any trade-mark, print, label or cause to be carried on, aprocess under any patent or copyrighted matter owned or controlled by an enemy or ally of


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enemy at any time during the existence of a state of war may apply to the President for a license;and the President is authorized to grant such a license, nonexclusive or exclusive as he shalldeem best, provided he shall be of the opinion that such grant is for the public welfare, and thatthe applicant is able and intends in good faith to manufacture, or cause to be manufactured, themachine, manufacture, composition of matter, or design, or to carry on, or cause to be carried on,

the process or to use the trade-mark, print, label or copyrighted matter. The President mayprescribe the conditions of this license, including the fixing of prices of articles and productsnecessary to the health of the military and naval forces of the United States or the successfulprosecution of the war, and the rules and regulations under which such license may be grantedand the fee which shall be charged therefor, not exceeding $100, and not exceeding one percentum of the fund deposited as hereinafter provided. Such license shall be a complete defense toany suit at law or in equity instituted by the enemy or ally of enemy owners of the letters patent,trade-mark, print, label or copyright, or otherwise, against the licensee for infringement or fordamages, royalty, or other money award on account of anything done by the licensee under suchlicense, except as provided in subsection (f) hereof.

(d) The licensee shall file with the President a full statement of the extent of the use andenjoyment of the license, and of the prices received in such form and at such stated periods (atleast annually) as the President may prescribe; and the licensee shall pay at such times as may berequired to the alien property custodian not to exceed five per centum of the gross sums receivedby the licensee from the sale of said inventions or use of the trade-mark, print, label orcopyrighted matter, or, if the President shall so order, five per centum of the value of the use ofsuch inventions, trade-marks, prints, labels or copyrighted matter to the licensee as establishedby the President; and sums so paid shall be deposited by said alien property custodian forthwithin the Treasury of the United States as a trust fund for the said licensee and for the owner of thesaid patent, trade-mark, print, label or copyright registration as hereinafter provided, to be paidfrom the Treasury upon order of the court, as provided in subsection (f) of this section, or uponthe direction of the alien property custodian.

(e) Unless surrendered or terminated as provided in this Act [sections 1 to 6, 7 to 39, and 41 to44 of this Appendix], any license granted hereunder shall continue during the term fixed in thelicense or in the absence of any such limitation during the term of the patent, trade-mark, print,label, or copyright registration under which is it granted. Upon violation by the licensee of any ofthe provisions of this Act [said sections], or of the conditions of the license, the President may,after due notice and hearing, cancel any license granted by him.

(f) The owner of any patent, trade-mark, print, label, or copyright under which a license isgranted hereunder may, after the end of the war and until the expiration of one year thereafter,file a bill in equity against the licensee in the district court of the United States for the district inwhich the said licensee resides, or, if a corporation, in which it has its principal place of business(to which suit the Treasurer of the United States shall be made a party), for recovery from thesaid licensee for all use and enjoyment of the said patented invention, trade-mark, print, label, orcopyrighted matter: Provided, however, That whenever suit is brought, as above, notice shall befiled with the alien property custodian within thirty days after date of entry of suit: Providedfurther, That the licensee may make any and all defenses which would be available were nolicense granted. The court on due proceedings had may adjudge and decree to the said owner


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payment of a reasonable royalty. The amount of said judgment and decree, when final, shall bepaid on order of the court to the owner of the patent from the fund deposited by the licensee, sofar as such deposit will satisfy said judgment and decree; and the said payment shall be in full orpartial satisfaction of said judgment and decree, as the facts may appear; and if, after payment ofall such judgments and decrees, there shall remain any balance of said deposit, such balance shall

be repaid to the licensee on order of the alien property custodian. If no suit is brought within oneyear after the end of the war, or no notice is filed as above required, then the licensee shall not beliable to make any further deposits, and all funds deposited by him shall be repaid to him onorder of the alien property custodian. Upon entry of suit and notice filed as above required, orupon repayment of funds as above provided, the liability of the licensee to make further reportsto the President shall cease.

If suit is brought as above provided, the court may, at any time, terminate the license, and may,in such event, issue an injunction to restrain the licensee from infringement thereafter, or thecourt, in case the licensee, prior to suit, shall have made investment of capital based onpossession of the license, may continue the license for such period and upon such terms and with

such royalties as it shall find to be just and reasonable.

In the case of any such patent, trade-mark, print, label, or copyright, conveyed, assigned,transferred, or delivered to the Alien Property Custodian or seized by him, any suit broughtunder this subsection, within the time limited therein, shall be considered as having been broughtby the owner within the meaning of this subsection, in so far as such suit relates to royalties forthe period prior to the sale by the Alien Property Custodian of such patent, trade-mark, print,label, or copyright, if brought either by the Alien Property Custodian or by the person who wasthe owner thereof immediately prior to the date such patent, trade-mark, print, label, or copyrightwas seized or otherwise acquired by the Alien Property Custodian.

(g) Any enemy, or ally of enemy, may institute and prosecute suits in equity against any personother than a licensee under this Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix] toenjoin infringement of letters patent, trade-mark, print, label, and copyrights in the United Statesowned or controlled by said enemy or ally of enemy, in the same manner and to the extent thathe would be entitled so to do if the United States was not at war: Provided, That no finaljudgment or decree shall be entered in favor of such enemy or ally of enemy by any court exceptafter thirty days notice to the alien property custodian. Such notice shall be in writing and shallbe served in the same manner as civil process of Federal courts.

(h) All powers of attorney heretofore or hereafter granted by an enemy or ally of enemy to anyperson within the United States, in so far as they may be requisite to the performance of actsauthorized in subsections (a) and (g) of this section, shall be valid.

(i) Whenever the publication of an invention by the granting of a patent may, in the opinion ofthe President, be detrimental to the public safety or defense, or may assist the enemy or endangerthe successful prosecution of the war, he may order that the invention be kept secret andwithhold the grant of a patent until the end of the war: Provided, That the invention disclosed inthe application for said patent may be held abandoned upon it being established before or by theUnder Secretary of Commerce for Intellectual Property and Director of the United States Patent


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and Trademark Office that, in violation of said order, said invention has been published or thatan application for a patent therefor has been filed in any other country, by the inventor or hisassigns or legal representatives, without the consent or approval of the commissioner or under alicense of the President.

When an applicant whose patent is withheld as herein provided and who faithfully obeys theorder of the President above referred to shall tender his invention to the Government of theUnited States for its use, he shall, if he ultimately receives a patent, have the right to sue forcompensation in the United States Court of Federal Claims, such right to compensation to beginfrom the date of the use of the invention by the Government.

11. Importations prohibited

Whenever during the present war the President shall find that the public safety so requires and

shall make proclamation thereof it shall be unlawful to import into the United States from anycountry named in such proclamation any article or articles mentioned in such proclamationexcept at such time or times, and under such regulations or orders, and subject to such limitationsand exceptions as the President shall prescribe, until otherwise ordered by the President or byCongress: Provided, however, That no preference shall be given to the ports of one State overthose of another.

12. Property transferred to Alien Property Custodian

All moneys (including checks and drafts payable on demand) paid to or received by the alienproperty custodian pursuant to this Act [sections 1 to 6, 7 to 39, and 41 to 44 of this Appendix]shall be deposited forthwith in the Treasury of the United States, and may be invested andreinvested by the Secretary of the Treasury in United States bonds or United States certificates ofindebtedness, under such rules and regulations as the President shall prescribe for such deposit,investment, and sale of securities; and as soon after the end of the war as the President shalldeem practicable, such securities shall be sold and the proceeds deposited in the Treasury.All other p

40 stat 411 title 50 usca trading with the enemy act 1917

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